In the charitable world, what do you call a permanent fund that provides ongoing support for local causes? We call it a community endowment.
Think of an endowment like a charitable investment account. It offers reliable funding for the needs of today—and tomorrow. Endowments are a great way for generous people to support the causes they care about and make a lasting impact that will grow over time.
Different Types of Endowments
Endowments can come in many forms. Here are a few of our most popular:
- Unrestricted Community Grantmaking Funds
Our DuPage Forever Fund is a perfect example. Fueling our Community Impact grant program, this endowment pools gifts from caring community members to enable us to respond effectively to changing needs across DuPage County every year, ensuring our grantmaking is strategic and focused.
- Field-of-Interest Community Grantmaking Funds
These funds address specific issues like hunger, housing, youth education, mental health, workforce development, the arts, the environment, and more. Each year, they provide targeted support in a chosen field to local charities addressing certain needs in DuPage.
- Designated Funds
These are set up by donors to benefit a specific nonprofit. Designated funds provide a steady stream of income to that organization—year after year—in support of its mission. They can also be restricted to a specific purpose within the nonprofit such as for a particular service, program, or need.
How Does an Endowment Work?
An endowment is a pool of assets invested by the Foundation. The original contribution—called the principal—stays intact. Only a portion of the endowment’s income is granted each year to support community needs. This way, the fund grows over time and gives more every year.
See the chart at left for how a $100,000 contribution can grow and give back annually over time.
Who Decides Where the Money Goes?
- For unrestricted and field-of-interest funds, our Grant Committee, Board of Trustees, and program team use their knowledge and expertise to select applications from local charities to fund opportunities that have significant local impact through our grantmaking programs including Community Impact, Arts DuPage, and Capacity-Building.
- For designated funds, we work with the donor when the fund is set up to identify the beneficiary charity. Each year, we make sure the gift supports the nonprofit exactly as the donor intended. Designated funds essentially turn a donor’s annual gift into a perennial gift for their favorite nonprofit.
Did you know DuPage Foundation is currently leading a $35 million community endowment campaign called All In DuPage?
Our All In DuPage campaign is focused on growing these vital endowment resources to expand our impact. By contributing, you’re helping build a lasting legacy of support for DuPage County. That’s the heart of All In DuPage—making sure our community thrives today, tomorrow, and always.
This $35 million effort has two main goals:
- Raise $25 million in new endowed funds for impact in our community.
This will double the impact of our community grant programs, helping us meet more needs across DuPage County, and adding new types of grants our nonprofits need.
- Grow our Operating Endowment by $10 million.
This ensures DuPage Foundation has the resources to sustain and grow our work for the long term, supporting both the nonprofits we serve and the community at large.
Ready to go All In for DuPage?
Learn more about how you can support our community’s future by contacting Michael Trench, vice president for advancement, at michael@dupagefoundation.org or 630.665.5570.
